What is shared ownership and how does it work?

These properties are normally built by the registered social landlord specifically to help people get onto the home ownership ladder.

To begin with you buy at least a 25% share, but no more that a 75% share, of your property. Usually after the first year you have the option to buy more of a share in your property - up to 100% if you wish. You will pay a reduced rent or occupancy payment for the share you do not own. The higher the share you own in a property, the less rent you will pay.

The total monthly cost of the mortgage repayments and the rent should come to less than the repayment of the mortgage for the whole property.

Who is eligible for shared ownership?

You need to meet several criteria to be eligible for shared ownership. The registered social landlord will assess your financial circumstances including your employment, income, savings and ability to obtain a mortgage.

The criteria and priorities may vary between registered social landlords.

Priority is normally given to:

first time buyers - although people who have previously owned a property may be considered under certain circumstances such as health problems or relationship breakdown

current council or registered social landlord tenants or waiting list applicants

people on low or modest incomes - although you must be able to afford at least a 25% share of the home

What if I want to sell my shared ownership property?

You can sell the property whenever you like. However, you should check with the registered social landlord to find out their procedure as they may have the first option to buy back the property.

The registered social landlord will normally help you to find a buyer as anyone purchasing your share in the property will need to meet the same criteria and priorities of the scheme.

If you own the property outright you should be able to sell it on the open market without the registered social landlord involved.

Where can I get more information on shared ownership?

For more information on registered social landlords currently running shared ownership schemes in the Aberdeenshire please contact: